FTX: an end-of-crisis plan, but major oversights

L’bankrupt exchange formalized a new bankruptcy exit plan which he will submit to the vote from creditors next year. FTX however, leaves many points unresolvedincluding that of its future and the value of its tokens.

FTXwill the firm formerly headed by Sam Bankman-Fried – convicted and awaiting sentencing – have a second life? The question remains unanswered in the latest Chapter 11 exit plan devised by its directors.

This is not the only major aspect of the proposal put on the table for the company’s creditors. As reported by Bloombergcustomers and creditors will be asked to vote next year.

What about FTX v2 and the value of unsold tokens?

The proposal calls for the repayment of several billion dollars in cash. These funds will be provided by the sale of FTX’s liquid tokens. For several weeks now, the bankrupt exchange has been conducting sales on crypto markets, including its SOL capital.

The plan made public – with the endorsement of the main creditor and customer groups involved in the proceedings – does not, however, disclose all its provisions. Several critical points remain to be defined.

Will FTX be a cryptocurrency exchange again? This is one of the questions left unanswered. But it’s not the only one. The value of various illiquid tokens held by the firm is also of interest to creditors, as is how much they could get for them.

2024 year of sanctions for SBF

According to BloombergIt is likely that these aspects of the plan will be detailed at the vote in 2024. In the event of approval, there will still be another stage to go through, that of judgment by the Commercial Court.

Only a magistrate can ultimately validate a plan and authorize exit from Chapter 11, the US bankruptcy law. 2024 will also be a milestone year for SBF, which, like its ex-friends and managers, will have its day in court.

The latter, however, pleaded not guilty. During the trial, Caroline Ellison, director of Alameda, Gary Wang, co-founder of FTX and Nishad Singh, director of engineering, blamed SBF. They are expected to receive lighter sentences.

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